Explain the provisions regarding penalty for incorrect audit report as per the provisions of the Companies Act, 2013.

Any failure or lapse on the part of secretarial auditor may attract penalty for incorrect report and disciplinary action for professional or other misconduct under the provisions of the Company Secretaries Act, 1980. Further section 448 of Companies Act, 2013 deals with penalty for false statements. The section provides that if in any return, report, certificate, financial statement, prospectus, statement or other document required by, or for the purposes of any of the provisions of this Act or the rules made thereunder, any person makes a statement, - which is false in any material particulars, knowing it to be false; or which omits any material fact, knowing it to be material, he shall be liable under section 447 which deals with punishment for fraud. Section 204(4) also cast responsibility on the company secretary in practice in case of default of provision of section 204 and shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees.